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[Cites 7, Cited by 0]

Karnataka High Court

Directorate Of Enforcement vs Union Of India on 6 February, 2025

Author: Hemant Chandangoudar

Bench: Hemant Chandangoudar

                                                         -1-
                                                                       NC: 2025:KHC:5438
                                                                   WP No. 30424 of 2024



                                   IN THE HIGH COURT OF KARNATAKA AT BENGALURU
                                      DATED THIS THE 6TH DAY OF FEBRUARY, 2025
                                                       BEFORE
                                 THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR
                                       WRIT PETITION NO. 30424 OF 2024 (GM-RES)

                            BETWEEN:

                            DIRECTORATE OF ENFORCEMENT
                            3RD FLOOR, B BLOCK, BMTC,
                            SHANTHINAGAR, TTMC K.H.ROAD,
                            BENGALURU-560027, REPRESENTED BY
                            ITS ASSISTANT DIRECTOR.
                                                                           ...PETITIONER
                            (BY SRI. PRASANNA KUMAR P., ADVOCATE)

                            AND:

                            1.   UNION OF INDIA
                                 MINISTRY OF ELECTRONICS AND INFORMATION
                                 TECHNOLOGY, BY IT SECRETARY,
                                 ELECTRONICS NIKETAN, 6, CGO COMPLEX,
                                 LODHI ROAD, NEW DELHI -110003,
                                 REPRESENTED BY ITS ASSISTANT SOLICITOR
                                 GENERAL, HIGH COURT OF KARNATAKA,
                                 BENGALURU-560001.

                            2.   UNIQUE INDENTIFICATION AUTHORITY OF INDIA
                                 (UIDAI) 3RD FLOOR, SOUTH WING,
BK
MAHENDRAKUMAR


Digitally signed by B K
MAHENDRAKUMAR
Location: High Court of
                                 KHANIJA BHAVAN, 49, RACE COURSE ROAD,
                                 BENGALURU-560001, REPRESENTED BY
Karnataka, Dharwad Bench
Date: 2025.02.07 11:09:33
+0530



                                 ITS DEPUTY DIRECTOR.
                                                                       ...RESPONDENTS
                            (BY SRI. SHANTHI BHUSHAN H., ASSISTANT SOLICITOR GENERAL)

                                 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 OF THE
                            CONSTITUTION OF INDIA R/W SECTION 33 OF THE AADHAAR
                            PRAYING TO, ISSUE A WRIT IN THE NATURE OF MANDAMUS TO
                            RESPONDENT NO.2 PERMITTING THE PETITIONER TO EXAMINE
                            THE AADHAAR DATABASE OF 21 PERSONS INCLUDING IDENTITY
                            INFORMATION OR AUTHENTICATION RECORDS AS PER SEC. 33
                            OF THE AADHAAR ACT, 2016 TO VERIFY WHETHER ANY CHANGE
                                    -2-
                                                  NC: 2025:KHC:5438
                                             WP No. 30424 of 2024



OF NAME, ADDRESS, PHONE NUMBER ETC., HAVE BEEN MADE IN
RESPECT OF THE AADHAAR NUMBERS AND ETC.

    THIS PETITION, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:

CORAM:       HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR

                               ORAL ORDER

1. The petitioner is the Enforcement Directorate seeking a writ in the nature of Mandamus directing the respondent No.

- 2 - Unique Identification Authority of India (UIDAI) to permit the petitioner to examine the Aadhar database of 21 persons including the identity information or authentication records as per Section 33 of the Aadhar Act, 2016 to verify whether any change has been made in respect of the Aadhar numbers.

1.1. Additionally, the petitioner seeks a writ in the nature of Mandamus to direct the respondent No. - 2 - UIDAI to share the correct/true details of the following 19 Aadhaar numbers, such as the name, address, photograph, date of birth.


Sl.        Name       Accou      Aadhar     Amount          Remarks
No.                   nt No.     Number      Paid in
                                               the
                                            Account
                                              from
                                            KIADB in
                                               INR

 1.     Mallaya      006910     3459 6130   37260952   The bank account
       Gangayya      400013       1547                 has been opened
      Shambalmath     4453                             with fake identity and
         C/o.                                          address.     Identified
                                                       original person. He
                                   -3-
                                                 NC: 2025:KHC:5438
                                            WP No. 30424 of 2024




      Gangayya                                        has not received the
       Aralikatti,                                    compensation. The
        Haveri,                                       land does not belong
       Aralikatti,                                    to him. He is a
                                                      mediator for Santosh
      Karnataka-
                                                      Jain & Bharat Jain.
        581109                                        Needs         further
                                                      investigation

2.     Mahadev        006910   5290 4387   6080000    No Such address
       Basappa        400013     6218                 exists. The account
       Chalwadi        4606                           has been opened by
     C/o Basappa                                      the accused persons
                                                      and the transactions
       Chalwadi
                                                      in the same have
     Ward No.22                                       been undertaken by
       Ganesh                                         the accused persons
        Nagar
      Vijayapur,
       Bijapur,
      Karnataka-
       586109.

3.    Rajeshwari      006910   8117 5372   1888224    Not         received
     Basalingappa     400030     2618                 compensation.
        Yaragatti      5525                           Account opened with
          C/o.                                        fake ID Proof and
                                                      address. Filed FIR
     Rasalingappa,
                                                      with Vidyagiri police
       3rd Cross,                                     Chargesheet filed.
      Kata Market
      Road, Hubli,
       Dharwad,
         Hubli,
      Karnataka-
        580029.

4.     Vinayak        006910   9162 1898   1353227    The address is fake.
      Shankarao       400020     5588                 No such address
      Nayik C/o.       5549                           exists. The account
      Shanbkrao                                       has been opened by
                                                      the accused persons
     Deshpande
                                                      and the transactions
     Nagar Hubli,                                     in the same have
      Dharwad,                                        been undertaken by
     Karnataka-                                       the accused persons
       580029.

5.    Gurushanth      006910   4278 8456   20887020   The address is fake.
       Veerappa       400025     3469                 No such address
     Valasangi S/o.    1440                           exists. The account
       Veerappa                                       has been opened by
                                                      the accused persons
      Valasangi,
                                  -4-
                                                NC: 2025:KHC:5438
                                           WP No. 30424 of 2024




       271 Near                                      and the transactions
      Durga Devi                                     in the same have
     Temple Vikas                                    been undertaken by
        Nagar,                                       the accused persons
       Dharwad,
        Hubli,
      Karnataka

6.    Fakkirappa     006910   9488 4129   20345000   The address is fake.
       Yallappa      400025     5117                 No such address
        Bojagar       2218                           exists. The account
     S/o. Yellappa                                   has been opened by
                                                     the accused persons
     Bojagar 154,
                                                     and the transactions
      Near Durga                                     in the same have
     Devi Temple,                                    been undertaken by
     Vikas Nagar,                                    the accused persons
       Dharwad,
         Hubli,
      Karnataka

7.     Nagappa       006910   2208 2783   25805000   The address is fake.
       Yallappa      400025     0718                 The      person    has
        Bellari       2607                           passed       away    in

S/o. Yallappa 2019. Fake account opened and payment Bellari 120, made in 2022.

Nekarnagar, Recorded statement 3rd cross, from his brother.

         Hubli                                       Obtained         death
                                                     certificate.

8.     Shivaraj      006910               28860000   The account has
      Dyamanna       400025   8152 6363              been opened with
       Dandeli        2638      4858                 fake ID and address
         S/o.                                        proof.      Identified
                                                     original      person
      Dyamanna
                                                     recorded statement
     Dandeli, 160,                                   under section 50 of

Annandnagar PMLA 2002. He has Old Hubli not received money.

Dharwad-

580024

9. Krisha 006910 9337 5480 29185000 The account has Yallappa 400025 2660 been opened with Bellari 2713 fake ID and address S/o. Yellappa proof. Identified original person Bellari 771, recorded statement Near Water under section 50 of Tank, PMLA 2002. He has Annandnagar, not received money.

-5-

NC: 2025:KHC:5438 WP No. 30424 of 2024 Timmasagar, Dharwad-

580024.

10. Shantilal 006910 9156 6705 29634624 The account has Dhanraj Jain 400025 1190 + been opened with S/o. Dhanraj 2744 41026907 fake ID and address Jain, MR = proof. Identified original person Nagar, 2nd 70671531 recorded statement cross, under section 50 of Dharwad- PMLA 2002. He has 580001. not received money.

11. Muralidhar 006910 5074 3129 41145000 The account has Shrinivasrao 400013 0253 been opened with Jagirdhar 4279 fake ID and address C/o. proof. Identified original person Srinivasrao, recorded statement 93 Sri under section 50 of M.Visveswara PMLA 2002. He has yyanagar, 3rd not received money.

Cross Belagavi, Karnataka-

590001.

12. Unspecified Unspeci 5182 5691 Unspecified Unspecified fied 6295

13. Danappa 071610 3440 7176 13275000 The address is fake.

       Fakirappa      400028      6157                    No such address
        Durgada        6916                               exists.
       Murkvada,
        Shivpur,
         Uttar
       Kannada,
       Karnataka-
        581329.

14. Ganapati Bhat     071610    8117 4799   5332262       The address is fake.
     S/o. Ishwar      400028      3456                    No such address
     Gouli Galli       6985                               exists.     Identified
     Malamaddi,                                           original      person
                                                          recorded statement
      Dharwad-
                                                          under section 50 of
       580001.                                            PMLA 2002. He has
                                                          not received money..

15.     Shivaram      006910    9071 4629   4080000       The address is fake.
         Anant        400027      3341                    No such address
                                     -6-
                                                   NC: 2025:KHC:5438
                                              WP No. 30424 of 2024




      Daddikar C/o.     0304                            exists. The account
         Anant                                          has been opened by
        Daddikar,                                       the accused persons
       Ward No.10,                                      and the transactions
                                                        in the same have
      Dyamanavana
                                                        been undertaken by
        Gudi oni,                                       the         accused
        Dharwad,                                        persons.
       Karnataka-
        580001.

16.     Manidhar        071610   3041 3983   13275000   The address is fake.
      Langote S/o.      400025     2364                 No such address
       Peer Saab         86954                          exists.
      Shantinagar,
          New
       Gavathan
      Bailahongal,
        Belagavi,
       Karnataka-
        5911104.

17.   Madarasaab        006910   7740 2273   35360000   The address is fake.
       Khadarsaab       400025     4983                 No such address
      Halabavi, C/o.     2706                           exists. The account
       Khadarsaab                                       has been opened by
                                                        the accused persons
      Halabavi, 342
                                                        and the transactions
       Nehrunagar,                                      in the same have
        Dharwad,                                        been undertaken by
       Karnataka-                                       the         accused
        580003.                                         persons.

18.     Veeranna        006910   3424 1720   27000000   The address is fake.
        Shivappa        040002     1198                 No such address
      Sajjannar C/o.     52201                          exists. The account
        Shivappa                                        has been opened by
                                                        the accused persons
       Sajjannar,
                                                        and the transactions
          Hubli,                                        in the same have
        Dharwad,                                        been undertaken by
       Karnataka-                                       the         accused
         580024.                                        persons.

19.   Shivanagoud       006910   9288 0255   25155000   The address is fake.
        Venkanna        400025     5630                 No such address
      Gaouda Patil,      2614                           exists. The account
         Goudra                                         has been opened by
                                                        the accused persons
          Street,
                                                        and the transactions
      Hirehonnihalli,                                   in the same have
        Dharwad-                                        been undertaken by
         580114.                                        the         accused
                                 -7-
                                                 NC: 2025:KHC:5438
                                           WP No. 30424 of 2024




                                                    persons.



2. The petitioner contends that the above is sought in pursuance of an investigation under-way in ECIR No. BGZO/40/2023 dated 30.11.2023, registered under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA), in the case of VD Sajjan and others, where fraudulent bank accounts were opened in the names of impersonated individuals, and fraudulent / double / second compensation has been routed from the Karnataka Industrial Area Development Board (KIADB) into the said fraudulent bank accounts.

2.1 Subsequently, the monies deposited in the said accounts has been withdrawn in cash or further routed/layered into other bank accounts. The said bank accounts have been allegedly created by falsifying Aadhar data, whereby Aadhar cards were fraudulently obtained in the names of impersonated individuals.

3. The factual matrix of the matter at hand involves a case of a parcel of land measuring 12 Acres & 10 Guntas of land situated in sy. no. 150 and another parcel of land measuring 22 Guntas of land situated in sy. No. 154, in Mummigatti village, in Dharwad District, which was acquired by the KIADB in the year 2012, and the compensation of an amount of INR 3,32,43,438/-, payable against the same was -8- NC: 2025:KHC:5438 WP No. 30424 of 2024 paid vide cheque bearing no. 572241, dated 25.07.2012, to the landlord, one Shri Sanjay A Desai. The RTC in respect of the said lands stands in the name of KIADB, since 2012, and the said landlord is on record to have never made any subsequent claim for additional compensation.

4. However, one Shri VD Sajjan who was the Special Land Acquisition Officer at KIADB, in collusion with unknown individuals - within and outside of KIADB has allegedly fraudulently sanctioned a compensation for the second time amounting to INR 3,17,85,000/- for the said lands, again on 28.02.2022. The said amounts were transferred into an IDBI Bank at Hubli, bearing Account No.0069104000251846, opened in the name of Shri Sanjay Abbasaheb Desai, purported to reside at Shri Ram Nagar, Dharwad, Karnataka - 5800007.

5. Shri P Prasanna Kumar, appearing for the petitioner- Enforcement Directorate submitted that investigation has revealed that the above address is non-existent, as were the Aadhar details. One Shri Sunil Surendra Yadav has impersonated Shri Sanjay Appasaheb Desai, as corroborated / confirmed by the statement of the bona fide landlord - Shri Sanjay Appasaheb Desai, as recorded under Section 50 of PMLA, on 28.02.2024.

-9-

NC: 2025:KHC:5438 WP No. 30424 of 2024 5.1. The learned Counsel further contended that the true details of the above mentioned at paragraph no. 1.1. is essential for investigation in the offence of money laundering and pertinently, to trace the transfer of monies, which are proceeds of crime. Therefore, the learned Counsel contends that in view of provisions contained in Section 33 of the Aadhar Act, 2016, this Court issue a direction to the respondent No. 2 to disclose the required information, as the investigation of the case at hand reveals that modus operandi of the alleged perpetrators of the said offence was creation of fake bank accounts using manipulation and impersonation of the Aadhar database.

6. Shri Shanti Bhushan, the learned Deputy Solicitor General appears for respondents herein and submitted that respondents herein cannot disclose the requisite information, without specific orders of this Court.

7. Heard the learned counsels and perused the materials on record. The issue that emerges for consideration is whether the petitioner-Enforcement Directorate has made out a case for the issuance of a writ of mandamus, directing respondent No. 2 to disclose the identities and details of the persons whose Aadhar details have been impersonated to obtain fake identity which in turn has been used to open bank accounts and siphon off the proceeds of crime.

- 10 -

NC: 2025:KHC:5438 WP No. 30424 of 2024

8. The relevant facts necessary for disposal of the case at hand have been adequately captured in the preceding paragraphs and require no further elaboration.

9. The present petition being filed under Article 226 of the Constitution of India read with Section 33 of the Aadhar Act, 2016 requires a reference to the governing statutory provision.

9.1. Section 33 of the Aadhar Act, 2016 deals with disclosure of identities, and reads thus -

33. Disclosure of information in certain cases.--(1) Nothing contained in sub-section (2) or sub-section (5) of section 28 or sub-section (2) of section 29 shall apply in respect of any disclosure of information, including identity information or authentication records, made pursuant to an order of a court not inferior to that of a Judge of a High Court:

Provided that no order by the court under this sub- section shall be made without giving an opportunity of hearing to the Authority and the concerned Aadhaar number holder.
Provided further that the core biometric information shall not be disclosed under this sub-section. (2) Nothing contained in sub-section (2) or sub-section (5) of section 28 and clause (b) of sub-section (1), sub-

section (2) or sub-section (3) of section 29 shall apply in respect of any disclosure of information, including

- 11 -

NC: 2025:KHC:5438 WP No. 30424 of 2024 identity information or authentication records, made in the interest of national security in pursuance of a direction of an officer not below the rank of Secretary to the Government of India specially authorised in this behalf by an order of the Central Government:

Provided that every direction issued under this sub- section, shall be reviewed by an Oversight Committee consisting of the Cabinet Secretary and the Secretaries to the Government of India in the Department of Legal Affairs and the Department of Electronics and Information Technology, before it takes effect:
Provided further that any direction issued under this sub-section shall be valid for a period of three months from the date of its issue, which may be extended for a further period of three months after the review by the Oversight Committee.
10. The above Section clearly envisages a disclosure pursuant to an order of a Court not inferior than this Court, and the Apex Court in the case of K.S. Puttaswamy v. Union of India, 2019 1 SCC 1, has observed that the data may be collected/disclosed to the Executive in pursuance of legitimate purposes, including prevention and investigation of crimes. In the instant case, an investigation into an offence of money laundering being legitimate state interest and the petitioner herein being statutorily empowered to investigate into an offence under PMLA, it is appropriate that a Mandamus be
- 12 -

NC: 2025:KHC:5438 WP No. 30424 of 2024 granted directing the respondent No.2 to disclose the true identities of those as sought for herein.

11. A coordinate Bench of this Court in the case of National Investigation Agency, Hyderabad v. Union of India, in W.P. No. 2360/2022 : DD 10.08.2022 dealt with a case of a requisition sought in relation to investigation into an offence of cross-border human trafficking and prostitution of women, and observed therein while granting Mandamus that the petitioner-agency "shall not use the subject information & documents for any purpose alien to the investigation of the offences and prosecution of the offenders".

Accordingly, I order the following:

ORDER i. The instant petition is allowed.
ii. The respondent No. 2 is directed to permit the petitioner to examine the Aadhar database of the persons/numbers enumerated below, including identity information or authentication records, to verify whether any changes of name, address, phone number, etc. have been in respect of the Aadhar numbers.
- 13 -
NC: 2025:KHC:5438 WP No. 30424 of 2024 iii. The respondent No. 2 is directed to share the correct/true details - addresses, photographs, dates of birth, etc., with the petitioner of the following 19 Aadhar Nos. - 3459 6130 1547, 5290 4387 6218, 5290 4387 6218, 8117 5372 2618, 9162 1898 5588, 4278 8456 3469, 9488 4129 5117, 2208 2783 0718, 8152 6363 4858, 9337 5480 2660, 9156 6705 1190, 5074 3129 0253, 5182 5691 6295, 3440 7176 6157, 8117 4799 3456, 9071 4629 3341, 3041 3983 2364, 7740 2273 4983, 3424 1720 1198, 9288 0255 5630.
iv. The petitioner is hereby directed to not use the subject information and documents for any purpose alien to the investigation of the offences and prosecution of the offenders.
Sd/-
(HEMANT CHANDANGOUDAR) JUDGE HR Ct:vh List No.: 19 Sl No.: 2